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  • Fast food is struggling in the US

    From Joseph Pereira@1:103/705 to All on Wed Apr 8 04:06:08 2026

    Not because people aren't eating it anymore. Turnover is fine. The point is that margins have become increasingly thin due to factors including import tariffs, and the largest chains have the most financial reserves. They can therefore afford to cut into their profits. The chains that already had barely any margin are now running into the red under the current circumstances. They cannot raise prices, while costs are increasing enormously.

    Higher energy prices are now adding to the problem.

    In California, a chain with 65 restaurants has now sought Chapter 11 protection. They won't be the last.

    .
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